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“We are trying to spread the message that investing is not only for the wealthy” – Ike Onyia, MD, FBNQuest Asset Management

September 26, 2018 6:18 pm Interviews

 If you have a medium to long-term investment goals and are looking for steady income and access to cash from your chosen investment option, the FBN Fixed Income Fund may be an ideal choice for you. The Fund is designed to preserve and maximise your return on capital, as it is a low-to-medium risk product which invests in bonds issued by the Federal Government of Nigeria (FGN), State Governments and highly rated corporate institutions. It, therefore, presents an opportunity for retail investors to earn an income from investing in bonds, while still having access to cash when they need it.

The FBN Fixed Income Fund is a tactical product for investors who seek to maximize income at low-medium risk. Analysis from the Securities and Exchange Commission (SEC) revealed that the FBN Fixed Income Fund, which was launched in 2012, is the largest Bond Mutual Fund in Nigeria as at the 27th of July 2018. The total assets under management within Bond Mutual Funds in Nigeria as reported by SEC was N11 billion, and the FBN Nigeria Fixed Income Fund’s Net Asset Value (NAV) accounted for about 49% in that space. NAV is the value per share of a mutual fund on a specific date or time, and the FBN Fixed Income Fund’s NAV grew 9.64% from N5.01 billion on the 29th of December 2017 to N5.40 billion as at the 27th of July 2018. This simply means the bonds and securities selected and invested in by the fund returned positive growth in that time period, which the investors in turn enjoyed.

“We are trying to spread the message that investing is not only for the wealthy. The minimum investment into the FBN Fixed Income Fund is only fifty thousand naira (N50,000), which makes it accessible to many people. Investors’ funds are combined and invested in a diversified portfolio of high quality fixed income securities that aim to preserve the initial investment and deliver maximised returns.” Mr Ike Onyia, the Managing Director of FBNQuest Asset Management, said.

Mr. Onyia further stated, ‘A lot of investors choose FBNQuest Asset Management because we are personal investment managers. Our approach is guided by the customer’s unique investment objective and appetite, and our mutual funds are managed by experienced and skilled investment experts whose primary responsibility is to monitor each Fund and maintain the strong investment performance the firm is known for.”

The FBN Fixed Income Fund is regulated by the SEC, and the Fund Manager operates within the guidelines provided. From an asset allocation point of view, the Fund Manager can invest between 15% and 75% of the Fund in FGN bonds, up to 30% can be invested in State government bonds, up to 30% may be invested in corporate bonds while up to 15% may be invested in Eurobonds. They are also able to invest between 25% and 75% in Money Market securities, providing a measure of stability to the Fund’s return profile.”

FBNQuest Asset Management’s Mutual Funds are open-ended, which means units may be bought or sold on any business day.  Hence, when investors want access to their money, they will have it. This ensures that investors remain in charge of their investment management journey.

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